A quantity discount is extended for assembly stock (product that crosses through a warehouse and is sent to the store). A code 57 occurs when this allowance is listed on the supplier agreement but not included on an invoice.
Verify all information and terms on your purchase order prior to fulfilling order. You sales representative should have written correspondence for any “special” PO Deals. Suppliers should review POs before accepting them.
Code 57s can be disputed through the dispute portal if you can prove that the allowance was actually given on the invoice.
The common scenario for invalid code 57s is that your Supplier Agreement states that an allowance is supposed to be given off-invoice, but your EDI provider is actually giving the allowance off-line-item. In this scenario, the correct dollar amount is being withheld from the invoice, just from the wrong place. Disputing through the dispute portal and showing that the correct amount was already withheld can often overturn the deduction.
**Allowances are negotiated terms included in the supplier agreement or purchase order and will not be reviewed for repayment through the dispute portal. These deductions must be initiated with supporting documentation and approved by your buyer.
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